craig4509
craig4509
11.05.2021 • 
Business

Yesterday, a company announced an unexpected decrease in dividend from $.0.10 per share to $0.09. The share price probably A. fell because the change conveyed negative information about the firm’s future cash flows.
B. was unaffected because it is a small change and investors and managers do not worry about small changes in dividends.
C. rose because the investors would now receive more returns via capital gains and these gains are taxed at a lower rate.
D. rose because the decrease indicated the managers’ desire to de-emphasize dividends.

Solved
Show answers

Ask an AI advisor a question